• New Jersey Federal Court Reaffirms that, Absent Special Circumstances, an Insurer Does Not Owe a Fiduciary Duty to an Insured.
  • October 11, 2017
  • In a coverage dispute encompassing several claims, an insured alleged its insurer breached its fiduciary duty. The court acknowledged there are circumstances where an insurer owes a fiduciary duty, but it recognized that these are limited. For example, when “an insurer, acting as an agent to the insured when settling claims, owes a fiduciary duty,” and “an insurance company owes a duty of good faith to its insured in processing a first-party claim.” Without these types of special circumstances, a claim for breach of fiduciary duty cannot survive when the parties are acting in a normal contractual posture.